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July 27, 2015

Building A HCM Roadmap for Existing SAP HCM Customers Part 3 (Final)

Example of a Roadmap for an existing SAP HCM On-premise customer

Current Customer Background

XYZ divides its services into three service portfolios; Infrastructure, Applications, and Business Process Outsourcing. Infrastructure services includes maintaining the operation of part or all of a client's computer and communications infrastructure, such as networks, mainframes, "midrange" and Web servers, desktops and Laptops, and printers. Applications services involves the developing, integrating, and/or maintaining of applications software for clients. Business process outsourcing includes performing a business function for a client, like payroll, call centers, insurance claims processing, and so forth.

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March 30, 2015

Cloud or Captive - IT cost reduction strategy for SAP infrastructure

Two broad trends once can see in the SAP market.

Trend 1 - Working with SAP hosting partners and then move towards full-fledged SAP on the cloud

By and large organizations are moving away from an on premise SAP data center environment to having partnership with SAP hosting service providers. Basically companies lease server space and as well outsource BASIS Administration activities of their SAP systems to the hosting partners. These organizational can be expected slowly and steadily move towards embracing full fledged ERP on the cloud model as they mature and gain confidence with the hosting partners and also with the whole partnership model. Small organizations of $2 to $ 5 billion sized are the ones who are moving towards the "Public cloud" option which provide the most cost effective solution for them. Bigger organizations will tend to go for "Private Cloud" as they tend to have multiple SAP systems in their landscape and will see more advantage in the dedicated infrastructure even on cloud. "Hybrid cloud" is something that can appeal to bigger organizations as that addresses the risk and confidentiality aspect by moving only the development and quality environments into cloud while leaving the production environment on premise. To me the Hybrid cloud option is the ladder through which SAP user organizations can join the cloud bandwagon, build robust partnership model around risk and confidentiality for moving towards the Private cloud option which provides economies of scale.


Trend 2 - Keep the SAP data center on premise but move the SAP service department into a captive unit in a low cost location.

This option is sort of preferred for large SAP behemoths. Big companies in the order of sizes more than $10 billion will have huge SAP infrastructure and such systems tend to be dated and something heavily customized environments. It is these kind of organizations which consider going for cloud based SAP systems is too risky. These companies have large SAP systems and will keep adding new SAP systems or engage in spin-off activities due to regular merger and acquisitions. Over the time their data center have become too big and too complex, that any new CIO is threatened by the risk involved in even considering disturbing the functioning data center environment. So moving to cloud as a cost reduction strategy will have no buy in and even if implemented it will be on very small areas on ad-hoc basis. For such companies moving the IT support organization to low cost locations is safest bet on cost reduction. Having already outsourced many of the regular production support process, most likely these organization will have retained a core team of IT professionals who run the show with in house knowledge capability around core processes. It is these core process knowledge retention team that will become target cost reduction by way of opening a captive unit in a low cost country.


Is the second trend a viable?, given the rapid advances being made on cloud capabilities in the market and as well on the fast paced changes in the SAP capabilities. 5 to 10 years from now would the large SAP user organizations be better served by an in house data center or complexities will zoom to a level of tipping point where in move to cloud becomes a necessity. I read about a very similar story during the early industrialization due to lack of reliable power grids, big manufacturing industries had invested in building power plants on their own to ensure reliable electricity supply. But with the advancement made in power grids, and efficiencies achieved by utility companies, the concept of in house power plants vanished. It looks to me the same will be the case of data centers for large organizations. Given the advances being made by cloud service providers, it is going to soon become un economical to even have on premise data centers. SAP being the core ERP system for these companies, it is better addressed early for cloud migration. Investing in captives can be a strategy on IT cost reduction along with movement to cloud, but the latter will have larger impact on the bottom line and make large organization's IT nimble enough to react to market dynamics quickly and effectively.

July 17, 2013

Touching the Cloud - Part I

Having worked in ERP domain for most of my IT career, I always thought Cloud is hype! While I appreciate various benefits Cloud technology offers, I wondered how can large enterprises, with heavy investment in on-premise ERP landscapes, adopt this Cloud innovation. What happens to their current IT investments? Do these fancy cloud offerings rip & replace their existing on-premise solutions? What happens to current process design and the historical data they have amassed over number of years? In fact I believed Cloud is only for small companies who can't afford to have their own IT infrastructure. I was convinced Cloud is just as distant & misty for large ERP customers as the real clouds in sky! 

However last month, when I was required to prepare for a customer meeting, I broke my myth. I had to propose Cloud adoption options for one of our large pharma customer having highly complex & heterogeneous IT landscape with myriad of ERP & legacy applications. Frankly I was clueless hence I decided to check how SAP plans to address this dilemma.

Continue reading " Touching the Cloud - Part I " »

February 8, 2013

SAP... setting a trend of quicker, leaner & agile adoption.

Traditionally, the very thought of Enterprise Applications often struck a chord with several aspects large-scale: time-to-awareness, time to evaluate, installation infrastructure, implementation time and cost, to name a few. All in large scale - one of the main reasons that majority of the consumption came from relatively large enterprises. In recent times, however, this tradition has been seeing a fast disruption, in the world of SAP, through innovative software packaging models & effectively leveraging more recent technologies.

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March 29, 2012

Static or Dynamic Data Management.. SAP NetWeaver CE has the answer

Authors: Ranjeet Kumar Jha and Amit Gupta

Abstract

SAP NetWeaver Composition Environment (CE) has capability to design dynamic user interfaces that can suit various business needs. The benefit of using the dynamic user interfaces is that they can provide an easily scalable solution without needing constant development to meet varying business requirements of interaction with data that differs based upon markets/ geographies/ product lines/ divisions in an organization.

Through our trilogy of blogs we would like to share our experience around the business case and solution approach involving dynamic user interfaces.
 

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March 20, 2012

How the Insurance Companies can leverage FSCD module?

By Shweta Tiwari and Ranjit Kumar Dhand

SAP has provided a comprehensive solution for collection and disbursement system of Insurance Industry. Processes like policy management, claim handling commissions are all calculating systems and they do not directly interact with the user. Collection and Disbursement is a settling system which has interaction with the end user. It is a kind of invoicing system.

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February 24, 2012

Industry Perspective: Production supply with EWM execution - Part 1

By Yudhishthir Shrikant Joshi

The Warehouse Management solutions are traditionally used for granular level tracking of inventory and assisting inbound and outbound processes. EWM was rolled out to improve this solution for higher inventory turnover, multi geographical landscape of the system and complex warehouse processes. But our recent experience with EWM project, gave us an insight on how useful is EWM in assisting the Production process. First, let us understand why warehousing is important from the manufacturer's perspective.

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March 5, 2010

HRP – Home Resource Planning: An ERP Microcosm touching everyday life

While teaching ERP concepts, we always speak of islands of systems and processes with no major integration and leading to inefficiencies.   On one such occasion I was forced to apply similar analogy towards the current generation professionals who are trying to meet increasingly contending demands between Professional and Personal aspects of life.   Our lives are always inclusive of various such islands of partners, systems and processes such as Employer, Banks, Insurance, Schools, Service Providers, Hospitals, Doctors, Grocery & Retail stores, Government agencies etc.,   On the personal side we always try to play a major integration role between all these different entities and get stressed out in the process.  Hence this thought process and blog.

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